RWM Technical Analysis: Trade or Avoid It?

RWM Technical Analysis

Travellers Int’l. Hotel Group, Inc. (RWM) is trading at 5.45 per share, up by 0.37 percent, as of August 16, 2019 at 11:14:14 AM. Foreign investors have registered a Net Foreign Selling worth P492,000.00 only. The foreign fundies are bearish on RWM YTD.

The immediate support is near 5.36 as a precursor to 5.07 while the immediate resistance is near 5.54 as a precursor to 5.70.

Since the last week of June 2019, RWM has only been trading the range between the immediate support and resistance levels.

My proprietary 10SMACD combo has been invalid since July 2019. My proprietary Momentum Power Indicator is also bearish. This is not a good sign for those who are planning to enter a new position on RWM.

RSI has been in the neutral territory for a while already. That’s another confirmation of the consolidation that’s happening on RWM.

The risk level of RWM remains low based on its historical volatility score of 6.6 percent. Remember that not because a stock has a low risk level, it doesn’t mean you should buy it right away. I’ll expound my explanation of this topic tomorrow, August 17, 2019, at The Evergreen Strategy in Trading the Philippine Stock Market seminar.

Venue: First Metro Investment Hub (Unit 1515 Ayala Tower One and Exchange Plaza, Ayala Avenue, Makati City)

Click here to buy your ticket.

Trade-Volume Distribution

Last Price: 5.45
VWAP: 5.450672356
Most Traded: 5.45 – 5.45
Most Voluminous: 5.45 – 5.45

Even if the dominant range of RWM is parked closer to the intraday high than the intraday low, the other parameters of my proprietary Momentum Power Indicator are not met. This is the reason why I have a bearish Momentum Power Indicator.

What’s this 10SMACD combo about?
What’s this Momentum Power Indicator about?

I’ll give you an in-depth explanation of my methodologies tomorrow at the seminar.
I’ll discuss my trading and investing blueprint from stock selection to execution of trading plan. Here are the 6 lessons you’ll learn:

Lesson 1: how to identify the best stocks to trade
Lesson 2: how to check if the current trend is more likely to continue
Lesson 3: how to know the true market sentiment
Lesson 4: how to identify a confirmed buy signal
Lesson 5: how to identify the best price range to trade
Lesson 6: how to sell more logically and less emotionally

Click here to buy your ticket.

True Market Sentiment

True Market Sentiment of RWM as of Aug-16-2019 at 11:13AM, with a last price of 5.4500.
2 of the top 10 brokers registered a positive Net Amount
4 of the top 10 brokers registered a higher Buying Average than Selling Average
True Market Sentiment: BEARISH
Top 10 Players’ Buying Average: 5.4545
Top 10 Players’ Selling Average: 5.4506
Bonus Info:
4 out of 49 participants or 8.16% of all participants registered a 100% BUYING activity
41 out of 49 participants or 83.67% of all participants registered a 100% SELLING activity

The mood of the top 10 brokers is bearish. They agree with my bearish overall sentiment for RWM.

I am using my proprietary True Market Sentiment chart to identify the overall mood of the top 10 brokers.

I want you to understand that my True Market Sentiment chart is not a determiner of trend but sentiment.

I use this chart on several occasions. Here are some examples on how I use it depending on the situation.

Scenario 1

Let’s say the stock is still moving above your trailing stop loss. The Momentum Power Indicator is bullish.

You want to top up but you saw a huge Net Foreign Selling. Now you’re half-hearted to continue your plan to top up even though the Momentum Power Indicator is bullish just because you saw that the foreign fundies are bearish.

However, you saw that the True Market Sentiment is bullish. That means the majority of the top 10 brokers bought the dips.

That gives you the confidence to pursue your plan to top up then.

Scenario 2

Let’s say the stock is still trading above your trailing stop loss. However, the Momentum Power Indicator is bearish.

Now, you’re torn between pre-empting your trailing stop loss (selling even before it gets hit) and respecting it (sell only when the TSL gets hit).

But you see that the True Market Sentiment is bullish.

That may give you the confidence to hold your position because you see that the majority of the top 10 brokers are still interested in buying the dips.

Scenario 3

The stock is still trading above your trailing stop loss.

You see that the foreign investors registered a huge Net Foreign Buying.

Now, you’re asking yourself, “Does it make sense for me to top up (buy the dips) because the foreign investors are aggressively buying the dips EVEN IF the Momentum Power Indicator is bearish?”

But seeing that the True Market Sentiment is bearish, you decided not to pursue the plan to mimic what the foreign fundies are doing.

You realized that the foreign fundies can afford to buy the major dips because they have billions in their pocket.

You realized, “Why should I hurry in buying the dips when the majority of the top 10 brokers are not even showing signs of interest yet?”

Recommendations

If you have RWM because it’s still trading above your trailing stop loss, I suggest that you sell on strength due to the voluntary delisting of the company from the Philippine Stock Exchange. It’s either you sell on strength or wait for the Tender Offer.

If you don’t have RWM but are planning to trade it, I suggest that you pick other stocks for now. If you will attend the seminar in Makati tomorrow, Lesson 1 will be about stock selection. I hope to see you there.

Here are the 6 lessons you’ll learn:

Venue: First Metro Investment Hub (Unit 1515 Ayala Tower One and Exchange Plaza, Ayala Avenue, Makati City)

Click here to buy your ticket.

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Jaycee De Guzman

Founder and CEO at Equilyst Analytics

Experience the expertise of Jaycee De Guzman, the brain of Equilyst Analytics, renowned for his unique data analysis. He is a computer scientist and a self-taught digital marketing strategist and agriculturist. Since Equilyst Analytics’ founding in 2012, over 10,000 local and foreign clients have consulted with Jaycee de Guzman on crypto and stock investments.

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